Hikes are frequently frowned upon by borrowers and industry watcher Steve Mickenbecker said this has compelled banks to decrease fixed rates.

"[S]ome banks [have] decided to reduce their fixed mortgage rates because they need to stay competitive, and promote the cheaper home loans as their headline rates," Mickenbecker said.

For Mickenbecker, the advantages of a fixed rate mortgage stem from the fact that it allows borrowers to plan ahead and budget more easily, as well as offering protection from sudden interest rate hikes.

Of course, when interest rates fall, they will have to pay more than what they would have with a variable rate.

"But with rates as low as they are currently, this is not as big a risk. It would be a bigger risk if rates were as high as say 7-8%," he said.